Reduced VAT rate results in 152 new jobs

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According to a report published by the Restaurant Association of Ireland, 152 new jobs in the food, tourism and hospitality sectors have been created in Co Leitrim since the reduced VAT rate of 9% was introduced in July 2011.

According to a report published by the Restaurant Association of Ireland, 152 new jobs in the food, tourism and hospitality sectors have been created in Co Leitrim since the reduced VAT rate of 9% was introduced in July 2011.

To highlight the scale of job creation, the Report compares the number of direct new jobs to a major local employer, revealing that the 152 extra jobs created is just less than the number of people also employed in the Department of Social Protection in Carrick-on-Shannon

Adrian Cummins, Chief Executive of the Restaurants Association of Ireland (RAI), told the Leitrim Observer that “As this report proves, in terms of creating new jobs in the food and accommodation sector, the introduction of the new VAT rate in July 2011 has been a major driver of local employment growth.

152 new direct jobs have been created in Leitrim alone, with 21,633 new direct jobs created across the whole country.”

“This is a very conservative estimate and does not include the number of indirect jobs created in the wider economy as a result of the multiplier effect.

“When the multiplier effect is included, the total number of new jobs is even more impressive, with 222 jobs created in Leitrim and 31,584 jobs created nationally. More recent CSO figures released for Q2 show even greater employment statistic increases,” the RAI CEO noted.

The Report entitled “9% VAT – Food, Tourism & Jobs – Rebuilding Ireland’s Economy” uses national employment data from the Central Statistics Office. The Report examines the impact of the introduction of the new VAT rate in July 2011, when it was reduced from 13.5% to 9% for tourism related services and goods.

The Report covers the direct and indirect number of jobs created, an estimate of social welfare savings as well as the increase in revenue for the Exchequer (e.g. PAYE, USC and PRSI Employer contribution) at a county and national level.